Cape Town - Is the market cheap or expensive? Is a certain sector overvalued or undervalued? Naspers is trading at over R2 000 per share. Is that expensive? It sure sounds expensive with Steinhoff at just over R80.
It does not necessarily mean that a share with a high price is expensive and those with lower prices are less so. The share that is priced at R2 000 might earn a R1 000 per share for each of their shareholders while the one at R80 or R90 only earns R5 per share.
Below are some of the more common evaluation techniques that might help when valuing shares.